CarTrade IPO subscription opens on August 9
The CarTrade Tech IPO will open for subscription on August 9. The company has fixed a price band of Rs 1,585-1,618 per share for its approximately Rs 2,999 crore IPO. Online auto classifieds platform CarTrade’s IPO subscription will end on August 11.
CarTrade’s initial share sale will be an Offer for Sale (OFS) of 18,532,216 equity shares in total. At the upper end of the price band, the IPO is expected to raise Rs 2,998.51 crore.
Cartrade claims that of the 32 million unique visitors to the platform in the January-March quarter, 80 percent of them came organically (the company didn’t charge any marketing costs to get them).
Apart from providing a platform for buyers and sellers of vehicles, CarTrade is also a software company that has created the interconnection between stakeholders such as dealers, manufacturers and banks.
The company, citing an industry report, said that there is a steady move towards online auto portals and the total addressable market in India was USD 14.3 billion in FY20. According to CarTrade, so is the number of engagements and transactions on the platform. One of the largest automotive data destinations in the country.
Cartrade GMP
Unlisted shares of CarTrade are commanding a strong premium in gray colour. Before the issue opens, each CarTrade share is trading at a premium of Rs 610.
CarTrade expects that the listing of equity shares will enhance its visibility and brand image and provide liquidity to its shareholders, while also providing a public market for equity shares in India.
CarTrade was established in 2009. It is backed by marquee investors – Warburg Pincus, Temasek, JP Morgan and March Capital. The CarTrade platform allows customers to buy and sell used cars as well as new cars. The company said it is a professionally managed entity and has no identifiable promoter (as per SEBI regulations).
CarTrade offers a multi-channel auto platform with coverage and presence across vehicle types and value-added services through its brands – CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto and AutoBiz. Its consumer platforms – CarWale, CarTrade, and BikeWale – collectively receive 32 million, average unique visitors, per month (during the 3-month period ending March 31, 2021), and auctions at Shriram Automall and other auction platforms There were 8,14,316 vehicles listed for. During the financial year 2020-21.
CarTrade said it will not receive any proceeds directly from the Offer and that all proceeds will be received by the selling shareholders in proportion to the shares sold by the respective selling shareholders as part of the Offer. Currently, CMDB II holds an 11.93 percent stake in CarTrade43, Highdell Investment has a 34.44 percent stake, MacRitche Investment holds a 26.48 percent stake and Springfield Venture International holds a 7.09 percent stake in the company.
The CarTrade Company generates revenue from commissions and fees from auction and remarketing services, online advertising solutions, lead generation, technology-based services from original equipment manufacturers, dealers, banks and other financial institutions, and inspection and appraisal services.
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